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Swing Trade Idea – January 06, 2022

Market Setup

• Global markets are mixed with USA mixed, Europe red, Japan red, Hong Kong green, China red, Asia red

• Yield curve continues to steepen, positive for financials, negative for expensive tech

• US dollar flat, yen higher swiss franc lower – implies that fear not strong

• News: USA: Market negative reaction to Fed minutes with reduction of balance sheet key trigger, UE claims 830ET ISM PMI 10ET; Europe macro data good; China services PMI beat; Kazakhstan riots and Russian troops sent in: Major supplier of natgas, copper and world’s largest uranium exporter

• Stocks: WBA beat and raise; BBBY miss; CAG miss due to inflation; TGT, DG, NFLX  fell on downgrade; BIRD upgrade; LW beat and raise; DKS guidance raise; SYK buying VCRA

• Indices: SPY, IWM, QQQ are below the expected moves for the week and with negative gamma, selling can lead to selling. DJIA is the index where capital is flowing. SPX 4650 is a pivot level where selling can accelerate and 4700 a pivot level which can serve as resistance or buying above. Watch the FAANGMT especially TSLA and AAPL for large cap direction

• Sectors: Leading: China Internet, Oil, financials, Brazil, Cannabis Lagging: Silver, bitcoin, gold, spec tech

• Stocks to watch:  BABA WBA LW DB CCJ INTC TSLA AAPL Spec Names: ARQQ AMBA ASO

• Movers

• Earnings BBBY CAG STZ WBA

• Indices KWEB XOP XLE XLF EWZ MSOS XLI Yen EEM IWM DJIA JETS SLV /BTC GDX GLD ARKK XLK QQQ

• S&P500 WBA APA OXY FANG T MRO DVN CVX PNC HUM WU DG BBWI AKAM NEMNFLX TSLA

• Movers BIRD DVAX WBA GME T BAC C  BNTX SMPL BLI WU CNM DG BBWI AKAM TGT LSTR TSLA

• WSB CCJ BABA GME ASO CLF RKT F AMC RBLX DNUT RIOT NET SOFI

Trade Idea WBA

WBA beat and raise. Low priced stock in favour with rotation into value and potential catchup trade c.f. CVS. Premarket high 56.41 and be used for momentum trade or look for pullback buy.  High call interest at 57.5 and 60 which can serve as targets and resistance.